Originally Posted by jayparry
Well yeah, its not good for the customer who is looking to keep his car for 10 years, thats the point.
Instead of THIS GUY keeping his car for 10 years they got two sales out of him in those 10 years. Or, if he got the new car bug he might have looked elsewhere but they convinced him to come back in with a nav system and lower payment.
The idea is they increased 'owner loyalty' by selling him another car and they know the car they are getting back will have positive equity for the trade in. They still need to grab that other customer off the street, but this method should be like shooting fish in a barrel for them.
I understand that aspect of it. This marketing tactic isnt anything new though. Its almost exactly like those letters you get in the mail saying a dealer is low on used car inventory and willing to offer you more than market value for yours. It just to get you in the door and get you into another new car.
I guess it really depends how far BMW is willing to put into their trade in programs. Will they really be offering more than market value on the trade in? If so then many will be trading up.